Volume 30, Issue 1, July 2020, Pages 414–426
Abderrahmane Tahi1, Mohammed Djebbouri2, and Yassine Benzai3
1 Finance and Banking Department, Moulay Tahar University, Saida, Algeria
2 Finance and Banking Department, Moulay Tahar University, Saida, Algeria
3 Finance and Banking Department, Moulay Tahar University, Saida, Algeria
Original language: English
Copyright © 2020 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study aims at measuring the banking technical efficiency levels in the Middle East and North Africa MENA region from the period 2010-2014 over six 06 countries (KSA, Qatar, Kuwait, Jordan, Tunisia, Algeria) using the nonlinear Data Envelopment Analysis DEA model based on an unbalanced panel data of 66 banks (47 conventional banks and 19 Islamic banks). The results suggest that conventional banks are more technical efficient than Islamic banks under the Constant returns to scale assumption. However, the efficiency scores vary across the sample under the Variable return scale assumption which reflect the importance of the size and economies of scale in determining the overall banking efficiency in the region.
Author Keywords: Islamic banks, conventional banks, DEA, technical efficiency.
Abderrahmane Tahi1, Mohammed Djebbouri2, and Yassine Benzai3
1 Finance and Banking Department, Moulay Tahar University, Saida, Algeria
2 Finance and Banking Department, Moulay Tahar University, Saida, Algeria
3 Finance and Banking Department, Moulay Tahar University, Saida, Algeria
Original language: English
Copyright © 2020 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This study aims at measuring the banking technical efficiency levels in the Middle East and North Africa MENA region from the period 2010-2014 over six 06 countries (KSA, Qatar, Kuwait, Jordan, Tunisia, Algeria) using the nonlinear Data Envelopment Analysis DEA model based on an unbalanced panel data of 66 banks (47 conventional banks and 19 Islamic banks). The results suggest that conventional banks are more technical efficient than Islamic banks under the Constant returns to scale assumption. However, the efficiency scores vary across the sample under the Variable return scale assumption which reflect the importance of the size and economies of scale in determining the overall banking efficiency in the region.
Author Keywords: Islamic banks, conventional banks, DEA, technical efficiency.
How to Cite this Article
Abderrahmane Tahi, Mohammed Djebbouri, and Yassine Benzai, “Assessing the efficiency of Islamic and conventional banks in the MENA banking system: Data Envelopment Analysis DEA investigation,” International Journal of Innovation and Applied Studies, vol. 30, no. 1, pp. 414–426, July 2020.
